EXHIBIT 12.1
EL PASO CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
FOR THE NINE MONTHS
FOR THE YEAR ENDED DECEMBER 31, ENDED SEPTEMBER 30,
---------------------------------------- --------------------
1996 1997 1998 1999 2000 2000 2001
---- ---- ---- ---- ---- ---- ----
Earnings
Pre-tax income (loss) from continuing operations $ 1,119 $ 1,176 $ 174 $ 350 $ 1,774 $ 1,291 $ (304)
Minority interest in consolidated subsidiaries - 32 60 93 204 145 169
Income from equity investees - (208) (212) (303) (387) (297) (302)
------ ------- ------ ------------- -------- -------
Pre-tax income (loss) from continuing operations
before minority interest in consolidated
subsidiaries and income from equity investees 1,119 1,000 22 140 1,591 1,139 (437)
Fixed charges 676 745 835 999 1,333 1,024 1,116
Distributed income of equity investees - 114 96 194 316 227 225
Capitalized interest (15) (24) (36) (64) (82) (60) (51)
Minority interest
Preferred stock dividend requirements of
consolidated subsidiaries (2) (47) (71) (77) (89) (69) (42)
Fixed charges of minority interest in consolidated
subsidiaries - - (12) (36) (141) (98) (127)
------ ------- ------ ------------- -------- -------
Totals earnings available for fixed charges $ 1,778 $ 1,788 $ 834 $ 1,156 $ 2,928 $ 2,163 $ 684
======= ======== ======= ======= ======== ======== =======
Fixed charges
Interest and debt costs $ 631 $ 655 $ 710 $ 834 $ 1,027 $ 815 $ 910
Interest component of rent 43 43 42 52 76 42 37
Minority interest
Preferred stock dividend requirement 2 47 71 77 89 69 42
Other minority interest in consolidated
subsidiaries - - 12 36 141 98 127
------- -------- ------ ------------- -------- -------
Total fixed charges $ 676 $ 745 $ 835 $ 999 $ 1,333 $ 1,024 $1,116
======= ======== ====== ======= ======= ======== ========
Ratio of earnings to fixed charges 2.63 2.40 -(1) 1.16 2.20 2.11 -(1)
======= ======== ======= ======= ======= ======== ========
(1) Earnings were inadequate to cover fixed charges by $1 million for the year
ended December 31, 1998, and $432 million for the nine months ended
September 30, 2001.
For purposes of calculating these ratios: (i) "fixed charges" represent
interest cost (exclusive of interest on rate refunds), amortization of
debt costs, the estimated portion of rental expense representing the
interest factor, pretax preferred stock dividend requirements of
consolidated subsidiaries, and minority interests in consolidated
subsidiaries; and (ii) "earnings" represent the aggregate of pre-tax
income (loss) from continuing operations before adjustment for minority
interest in consolidated subsidiaries and income from equity investees,
fixed charges, and distributed income of equity investees, less
capitalized interest, minority interest in consolidated subsidiaries,
and preferred stock dividend requirement of consolidated subsidiaries.